- New business down by 5%
- Contract volume grows to €149 billion
- Equity interest in used-car platform heycar
- EBIT significantly below prior-year level at €392 million (Q3 2017: €508 million)
Slight decrease in worldwide new business
Daimler Financial Services’ new business decreased slightly in the third quarter of 2018 against the backdrop of lower unit sales by the automotive divisions. Worldwide, 458,000 new leasing and financing contracts worth €16.6 billion were concluded, which is 5% less than in the prior-year period. Contract volume at the end of September amounted to €148.8 billion and was thus significantly above the level at the end of 2017 (+6%). EBIT amounted to €392 million (Q3 2017: €508 million).
Significant decrease in new business in the Europe region
In the whole of Europe, 223,000 leasing and financing contracts were signed (-9%). New business therefore decreased by 8% to €7.2 billion. Key drivers of the decrease compared with the third quarter of last year were not only Germany (-11%), but also the development of new business in Turkey (-65%). Contract volume in Europe grew compared with the end of 2017 by 5% to €62.8 billion.
Strong growth in the Americas
In the Americas region, leasing and financing contracts with a total value of €5.4 billion were concluded in the third quarter of 2018 (+6%). Contract volume in the Americas region of €53.6 billion at the end of September was significantly higher than at year-end 2017 (+6%).
Africa & Asia-Pacific and China: decrease in new business
New business in the Africa & Asia-Pacific region (excluding China) decreased significantly in the third quarter of 2018 to €1.8 billion (-13%). Contract volume in the region amounted to €17.7 billion at the end of September (+3%).
In China, 78,000 new leasing and financing contracts were concluded in the third quarter (-2%) worth €2.2 billion (-10%). Contract volume amounted to €14.7 billion at the end of September, which is 21% higher than at the end of 2017.
Ongoing positive development of the insurance business
In the insurance business, Daimler Financial Services brokered 566,000 contracts in the third quarter of this year (+3%). The development was especially positive in China (+23%), the United Kingdom (+19%) and Canada (+14%).
heycar: equity interest in used-car platform
In September, Daimler Financial Services announced the signing of an agreement on a planned equity interest in the used-car platform, heycar. The cross-brand platform offers a full range of financial services as well as high-quality used cars with warranty cover.
Daimler Mobility Services posts record numbers
At September 30, 2018, Daimler Mobility Services had approximately 26 million customers. This means that the number of users of car2go, moovel and the ride-hailing group including mytaxi, Beat, Clever Taxi and Chauffeur Privé increased by 64% compared with the previous year. More than 46 million transactions were concluded in 130 cities worldwide in the third quarter.
Mobility joint venture: Berlin confirmed as headquarters
The planned joint venture between Daimler AG and the BMW Group will be headquartered in Berlin, subject to the approval of the European Commission. The goal is to develop the new mobility services provider outside the existing corporate structures and to profit from the dynamic environment of Germany’s capital city.